U.S. Treasury chief says she is 'very optimistic' about economic outlook

U.S. Treasury Secretary Janet Yellen said she is "very optimistic" about the outlook of the American economy despite high interest rates.

"Short term, inflation is coming down in context of an extremely strong labor market," Yellen said Tuesday at a Fortune CEO event, adding the U.S. has a substantial level of investments to strengthen its economy and boost its productive capacity.

The Federal Reserve made a total of 11 rate hikes since March 2022 to tame record inflation but the moves also risked pushing the U.S. economy into a recession.

Fed Chair Jerome Powell, Yellen's successor, said last month he believes it is possible to achieve a "soft landing"-a situation where a central bank raises interest rates enough to cool the economy down but avoids a recession.